«Market Leader» - news and previews making you rich.

Wednesday, 7 October 08:21 (GMT -05:00)

Business And Politics News

US Banks Passed Stress Tests


US bankin gnews. Stress tests for banks may be called one of the key moments of this week. On Tuesday FRS announced the results of stress tests for banks. Reports show that the majority of large-scale US banks are able to fulfill their obligations in extremely non-favourable economic circumstances. The situation may then develop in the following way:
  • Unemployment growth to 13%
  • Price drop by 50%
  • Drop of housing price by 21%

In such a case, the loss of 19 largest banks would amount to 534 bln. dollars. Despite considerable drop of predicted capital, 15 out of 19 holding banking companies will keep their capital four times higher than its normative value.

According to Aleksei Afanasiev, the head of the Department of Portfolio Investments of Masterforex-V Academy, last week’s macroeconomic data was mostly positive:
1. Retail sales rose by 1.1% in February, taking into consideration seasonal fluctuations. In comparison to February 2011, sales have risen by 6.5%. January sales have risen from 0.4% to 0.6%.




2. Industrial production remained the same. Capacity ratio is falling. It has dropped by 78.7% or by 1.6 points from the average since 1972. Its value is 18.3% lower than before crisis. Capacity ratio in January has been lowered from 78.5% to 78.8%. Industrial output did not change in February. Market consensus was slightly worse than expected.



3. Reports of Philadelphia FRS about national production volume slow minor increase in January. Current activity index in March amounted to 12.5 and showed the increase by 2.3 basic points, which is the maximal point since April 2011. General business index remained almost the same in March and amounted to 20.2.

4. Weekly unemployment claims have dropped to 351 000. The four-week moving average is close to the lowest point since the beginning of 2008.




5. Consumer sentiment index dropped to 74.3 in March from 75.3 in February, which is lower than market consensus. Consumer’s general sentiment is rather weak and does not show certain signs of recovery. Small business index slightly rose in February. It has risen form 93.9 to 94.3, which is the 6th rise in a row. However, the index remains at a rather low point due to slow economic growth.

Rally, which started since the beginning of the year, is getting weaker and casts pressure on investors’ psychology. We are currently observing overbought market, and there remains the only question: “will the future correction amount to 3-5% or 10-15%, or something else?”. We recommend redistributing the portfolio, for we believe that aggressive buying at current points are inappropriate.




You are free to discuss this article here:   forum for traders and investors


Add to blog
Got a question? – Ask it here »

Fed Doesn’t Deny Interest Rate Hikes Later This Year

Not so long ago, the Fed’s representatives announced that they had improved their expectations regarding the U.S. economic growth prospects in 2015.
Publication date: 05 October 08:17 AM

Emerging Markets Ask Fed For Interest Rate Hikes

It is reported that the Fed’s FOMC members are still at odds over the idea of increasing the interest rates as promised. We remind you that the FOMC meeting is going to take place just in a few days (less than a week).

Publication date: 13 September 03:05 PM

Dow Jones and Shanghai Composite Recover

Dow Jones, the U.S. stock index embracing the USA’s 30 biggest companies, has rallied fro he first time since August 19th. At this point, it is up by 619 points or 3,95% (16185,51 points). By the way, this is the biggest daily gain since 2001, Masterforex-V Academy reports.

As for the biggest gainers within the list of the mentioned 30 companies, these are Apple, Google and Amazon. Other major American stock indexes known as S&P 500 and NASDAQ have already gained 3,9% and 4,24% respectively.
Publication date: 27 August 05:44 AM

U.S. Dollar May Stop Being Global Reserve Currency Because Of Iran, John Kerry Says

According to John Kerry, United States Secretary of State, the U.S. Dollar may eventually stop being the world’s reserve currency in case the USA rejects the agreement with Iran and goes back to the policy of endless sanctions. This is what he told during his speech in the New-York office of Reuters.



On top of that, he says this may happen virtually overnight and the first wakeup calls are already here. For instance, Russia and China are already cooperating in terms of currency swaps.  He urged the U.S. authorities to pay attention to the fact that the so-called BRICS members are acting and do not want to want when the USA tells them what to do. This is confirmed by the latest BRICS summit in Russia. It seems that Putin is initiating a dialog to join forces when fighting the crisis. According to Mr. Kerry, it is important to keep in mind that all that is happening amid the current global market, which is changing since the rivalry never ends and most people are fed up with the system established after World War II. They thing the system is unfair and it doesn’t take into account their needs and interests.
Publication date: 12 August 08:23 AM

What Can Ukraine Export to the USA?

Not so long ago, Ukraine got the right to export its goods to the USA, while doing it duty free. Most likely, the overall amount of such exports is going to be limited and inconsiderable. The thing is that this program is tailored only to those Ukrainian manufacturers capable of producing premium-quality goods. At this point, Ukrainian may start exporting its household chemical goods to the USA.

Publication date: 03 August 03:00 PM

IMF Suspends Financial Aid to Greece


According to several web sources, the IMF cannot participate in further financial support of Greece at this point since Greece has failed to comply with all the necessary requirements making it possible to access new loans.



They say this decision came as the result of the latest IMF meeting conducted on July 29th. The report following the meeting says that Greece has an exceptionally high level of debt and the Greek authorities have failed to conduct all the reforms promised several years ago in exchange for financial support.
Publication date: 31 July 04:34 PM

Italy Follows In Greece’s Footsteps, Consequences Maybe More Considerable

Emergency meetings follow each other. Eurozone nations are trying to save Greece. At the same time, experts have raised the alarm - Italy seems to be the next Greece. Yet, this time, if that’s the case, the Greek crisis will seem nothing compared to the Italian one.

Publication date: 30 July 04:18 PM

Standard & Poor's Upgrades Greece’s Credit Ratings

On July 21st, Standard & Poor's, a well known international rating agency headquartered in the USA, upgraded Greece’s credit ratings – both in national and foreign currencies. The ratings went 2 steps up from CCC- up to CCC+, with a stable forecast, Market Leader reports.

Publication date: 23 July 04:58 AM

Greece Reopens Banks As Consumer Prices May Grow

Since today, July 20th, Greece has finally reopened its banks. This happened after the banks were close for 3 weeks. At the same time, the VAT and consumer prices are expected to be increased.


This means that the local banks are going to function under supervision. However, this is not going to prevent depositors and other clients from making major types of financial transactions, including withdrawal of savings.
Publication date: 20 July 10:03 AM

Greeks Express Discontent as Greece Compromises with Euro Group

The latest agreement reached between the Greek government and the Euro Group regarding the conditions for getting further financial support triggered a wave of protests throughout Greece.
The adversaries of the compromise with the lenders as well as the supporters of a Greek exit from the Eurozone gathered together yesterday, on July 13th, in front of the local parliament and burned the SYRIZA flag.
Publication date: 14 July 04:02 AM